ETFs
Should You Invest in the Invesco S&P 500 Equal Weight Technology ETF (RSPT)?
Designed to provide broad exposure to the Technology – Large segment of the equity market, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) is a passively managed exchange-traded fund launched on 11/01/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility and tax efficiency; they are also excellent vehicles for long-term investors.
Sector ETFs are also commodity funds, offering many ways to gain low-risk, diversified exposure to a broad group of companies in particular industries. Technology – Broad is one of 16 broad sectors in the Zacks Industry Rank. It currently has a #12 ranking, putting it in the bottom 25%.
Index details
The fund is sponsored by Invesco. It has accumulated over $4.16 billion in assets, making it one of the largest ETFs that attempt to match the performance of the Technology – Broad segment of the equity market. RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX before fees and expenses.
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Costs
Investors should also pay attention to an ETF’s expense ratio. Lower-cost products will perform better than higher-cost ones, assuming all other metrics remain the same.
The annual operating expenses of this ETF are 0.40%, making it one of the cheapest products in the sector.
Its 12-month rolling dividend yield is 0.47%.
Sector exposure and main holdings
While ETFs offer diversified exposure that minimizes the risk associated with any one security, it is still important to review a fund’s holdings before investing. Fortunately, most ETFs are highly transparent products that disclose their holdings daily.
This ETF has the highest allocation to the information technology sector, approximately 100% of the portfolio.
Looking at individual holdings, First Solar Inc (FSLR) represents about 2.36% of total assets, followed by Micron Technology Inc (MU) and Nvidia Corp (NVDA).
The top 10 stocks represent approximately 20.33% of total assets under management.
Performance and risk
So far this year, RSPT has gained about 15.12%, and is up about 30.34% over the past year (as of 07/09/2024). Over the past 52 weeks, the fund has traded between $26.28 and $37.49.
The ETF has a beta of 1.17 and a standard deviation of 23.40% over the past three years. With around 67 stocks, it effectively diversifies company-specific risk.
Alternatives
The Invesco S&P 500 Equal Weight Technology ETF carries a Zacks ETF Rank of 1 (Strong Buy), which is based on the asset class’s expected return, expense ratio and momentum, among other factors. For this reason, RSPT is a great option for investors seeking exposure to the technology ETF segment of the market. There are other additional ETFs in the space that investors may also want to consider.
The story continues
The Technology Select Sector SPDR ETF (XLK) tracks the Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks the MSCI US Investable Market Information Technology 25/50 Index. The Technology Select Sector SPDR ETF has $72.90 billion in assets, the Vanguard Information Technology ETF has $77.40 billion. The XLK has an expense ratio of 0.09% and the VGT charges 0.10%.
Conclusion
To learn more about this and other ETFs, find products that match your investment goals, and read articles on the latest developments in the ETF investment universe, visit Zacks ETF Center.
Want to know the latest recommendations from Zacks Investment Research? Download the 7 Best Stocks for the Next 30 Days today. Click to get this free report
Invesco S&P 500 Equal Weight Technology ETF (RSPT): ETF Research Reports
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
ETF Technology Select Sector SPDR (XLK): ETF Research Reports
Vanguard Information Technology (VGT) ETF: ETF Research Reports